Samsung to start manufacturing smartphones at its newly expanded Noida facility later this year

By
Jibu EliasMay 23, 2018, 2:11 p.m.

The Korean company also plans to double its output by 2020

Samsung is going to start smartphone production from an expanded facility in Noida, according to a report by The Economic Times. The Korean company also plans to double its output by 2020.

This will be Samsung’s largest investment in India to date, expanding its manufacturing facility in Noida to gain the ability to assemble printed circuit boards. The eventual goal is to turn it into a exports base in the future.

“We have invested about Rs 5,000 crore in doubling the capacity. All efforts are on to get the production started this year, which should start with mobile phones. Mounting of PCBs will also take place there,” said Mohandeep Singh, senior vice president for mobile business, Samsung India.

“We should be prepared for this high-growth market and not be found wanting that we’ve run out of the capability to serve the market. It’s a proactive move as we feel that the market will grow in the near-term and mid-term,” he added.

Samsung aims to manufacture 120 million smartphones by 2020 using the new facility. The company also plans to make India a manufacturing hub for exports to markets in Europe, Middle East and Africa.

For Samsung, who in recent years have lost significant market share in India to Chinese rivals such as Xiaomi and OnePlus, enhancing local manufacturing facilities is key, which would increase capacities to address India's budget and mid-segment smartphone market.

Additionally, the expanded local manufacturing capability will finally enable the company to keep its prices low in the budget segment, especially after the Central Bureau of Excise and Customs imposed a 10% duty on the import of electronic components earlier this year.